Retirement Planning Tips: 6 Funds That More Than Double The Yield Of The S&P 500

Featured on Investor’s Business Daily

By PAUL KATZEFF

What three things do retirees value? Answer: income, income and income. And if you can get decent retirement income without taking on excessive risk, so much the better. All it takes is a modest amount of retirement planning.

How much income is "decent"? Let's start your income-oriented retirement planning by aiming for yield that is at least double the yield from the broad market itself. The current 12-month yield from SPDR S&P 500 ETF (SPY) is 1.85%.

And let's focus our search on mutual funds and ETFs, which makes it easy to research them as well as buy and sell them.

Prominent financial advisors have plenty of fund recommendations whose yields at least double SPY's.

Remember, to get higher yield without excessive risk, you'll likely have to pay more. The ante for funds that are actively managed, which includes some ETFs, is often higher than for broad passive funds. And some higher yielding passive funds have hefty expense ratios, too.

In contrast, SPY is a passively run fund that tracks the popular market benchmark. Its annual expense ratio is 0.095%.